The Mahaana Islamic Index ETF (MIETF) was a landmark issue when launched in March 2024 as it lowered the entry point for domestic investors — with units priced from PKR10 (US$0.04) each compared with the Pakistan Stock Exchange (PSX)’s general minimum of PKR5,000 (US$17.97).
“This new service, run by Mahaana Wealth, is all about giving investors in Pakistan a more affordable option,” Co-Founder and CEO Muhammad Shamoon Tariq told IFN Investor. While it is the second Islamic equity exchange-traded fund (ETF) listed on the PSX, the MIETF is the first Islamic broad-based index tracker in Pakistan with a diverse sector portfolio. Funds received are invested in a basket of securities made up of the top 30 most liquid Shariah compliant companies (KMI 30) on the PSX with at least 85% of ETF assets remaining invested.
Chart 1: Sector allocation of the MIETF
This open-ended fund will be issuing dividends annually as the MIETF aims to help investors achieve long-term capital growth, said Muhammad Shamoon. JS Global Capital is a participant and market maker for this ETF, facilitating liquidity and trading activities.
Muhammad Shamoon is confident of this prospect as the firm’s previous launch of the Mahaana Islamic Cash Fund (MICF) in April last year achieved a 22% yearly return.
The MICF invests in cash and cash equivalents, including short-term government Sukuk and money market instruments.
In the extreme event of the underlying index stocks performing very poorly, Mahaana Wealth is empowered to conduct non-Shariah compliant activities to protect the rights of fund investors.
The MIETF is a forerunner for more funds to be launched, with Mahaana planning to release an Islamic equity ETF. Additionally, the company aims to introduce five other Islamic thematic ETFs later this year.
| Mahaana Islamic Index ETF fund factsheet | |
| Fund manager | Mahaana Wealth |
| Launch date | 11th March 2024 |
| Fund size/assets under management (as of the 8th May 2024) | 10,000 units priced at PKR10 (US$0.04) each; PKR35.97 billion (US$128.91 million) |
| Benchmark index | Mahaana Islamic Index (MII30) |
| Use of income | Investment objective is to provide competitive equity market returns with maximum coverage of the broader Islamic index at the lowest possible cost. |
| Asset class | Shariah compliant equity of Pakistan-listed companies |
| Dividend payout | Annually (Year = the 1st July to the 30th June) |
| Fees | Transaction cost as per the Depository and Clearing House Tariffs |
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
